How does the FHA control the use of $203($k$)$ money loaned for repairs to a home?

Group of answer choices

A cost estimate must be provided prior to loan approval, and repairs are approved by an FHA inspector when completed.

No money for repairs is released until the work is completed and approved by an FHA inspector.

No money is released until the work is complete and a new appraisal confirms the market value of the home.

The homeowner must use an FHA$-$approved contractor to designate and complete the repairs.